38.2-1039 - Enjoining unlicensed foreign or alien insurers from transacting the business of insurance in Commonwealth.
§ 38.2-1039. Enjoining unlicensed foreign or alien insurers from transactingthe business of insurance in Commonwealth.
A. For the purposes of issuing a temporary or permanent injunction under §38.2-220 to restrain unlicensed foreign or alien insurers from transactingthe business of insurance in this Commonwealth, the following acts, effectedby mail or otherwise, shall constitute transacting the business of insurancein this Commonwealth:
1. The issuance or delivery of insurance contracts to residents of thisCommonwealth or to corporations authorized to do business in thisCommonwealth;
2. The solicitation of applications for such contracts;
3. The collection of premiums, membership fees, assessments or otherconsiderations for such contracts; or
4. The transaction of any other insurance business in connection with suchcontracts.
B. Process may be served in accordance with § 13.1-758 or in any other mannerprescribed by law.
C. This section shall not apply to any nonprofit life insurance or annuitycompany which is organized and operated for the purpose of issuing insuranceand annuity contracts, exclusively to or for the benefit of nonprofiteducational or scientific institutions and individuals engaged in the serviceof those institutions. The clerk of the Commission shall be considered theattorney for service of process in this Commonwealth for all of suchinsurer's policy and contract holders in this Commonwealth. The appointmentshall (i) be irrevocable, (ii) bind the insurer and any successors ininterest, and (iii) remain in effect as long as there is in force in thisCommonwealth any contract made by the insurer or any obligation arising fromthe contract.
D. This section shall not apply to the following acts:
1. The procuring of a policy of insurance upon a risk within thisCommonwealth in compliance with Chapter 48 of this title;
2. Issuance of contracts of reinsurance;
3. Acts in this Commonwealth involving a policy lawfully solicited, writtenand delivered outside this Commonwealth covering only subjects of insurancenot resident, located, or to be performed in this Commonwealth at the time ofissuance of the policy;
4. Acts in this Commonwealth involving a group or blanket insurance policy ora group annuity lawfully issued and delivered in a state where the insurerwas licensed to transact the business of insurance;
5. Acts in the Commonwealth involving insurance contracts issued to an"industrial insured." For the purposes of this section, an "industrialinsured" is an insured (i) who procures the insurance of any risk or risksother than life and annuity contracts by use of the services of a full-timeemployee acting as an insurance manager or buyer or the services of aregularly and continuously retained licensed insurance consultant, (ii) whoseaggregate annual premiums for insurance on all risks, except for life,annuity, and accident and sickness insurance, total at least $100,000, (iii)who has at least 25 full-time employees, and (iv) either has gross assets inexcess of $3 million or has annual gross revenues in excess of $5 million.
E. Nothing in this section shall apply to nonprofit Railroad Brotherhood orother similar fraternal organizations.
(1968, c. 266, § 38.1-98.1; 1986, c. 562; 2008, c. 95.)